What is in the tax delegation
All the news emerging from the draft tax delegation
The text of the Fiscal Delegation is ready and will be approved today by the Council of Ministers.
Here are the main innovations that emerge from the text of the draft tax delegation (the full text at the bottom).
Reductions for new permanent hires are up by 20%. This is what we read in the draft tax delegation. “For holders of business income and for those practicing arts and professions, the cost of newly hired staff with permanent employment contracts” admitted as a deduction “is increased, for the purposes of determining income, by an amount equal to 20 percent of the cost attributable to the increase in employment", i.e. the lower amount between the actual cost relating to new hires and the overall increase in personnel costs resulting from the income statement compared to that relating to the current financial year at 31 December 2023. The relief is available to subjects who have carried out the activity in the tax period current on 31 December 2023 for at least three hundred and sixty-five days. It is not payable to companies and entities in ordinary liquidation, subject to judicial liquidation or to other liquidating institutions relating to the business crisis.
The reorganization of the Irpef rates from 4 to 3 arrives in the tax delegation expected today in the Council of Ministers. In the draft that you find at the bottom of the text we read that up to 28,000 euros of income the rate is 23 percent; over 28,000 euros and up to 50,000 euros, 35 percent; over 50,000 euros, 43 percent.
In 2024 the deduction foreseen for income from work up to 8 thousand euros is raised to 1,955 euros, from 1880.
Tax deductions decreased by 260 euros for high incomes. For those with incomes exceeding 50 thousand euros, the amount of the deduction from the gross tax due for the year 2024 is decreased by an amount equal to 260 euros for expenses whose deductibility is set at 19 percent by the aforementioned text single income tax or any other fiscal provision; donations to non-profit organisations, humanitarian, religious or secular initiatives; donations to political parties; donations to third sector organisations; insurance premiums for disaster risk.
The no tax area threshold for employee income is increased to 8,500 euros and is equalized to that already in force for pensioners. It is the effect of the increase to 1955 euros of the deduction up to 15,000 euros of total income for holders of employee income.
Here is how the draft tax delegation is structured : six articles which specifically deal with: the revision of the rules on personal income tax; the revision of the rules on tax deductions; the adaptation of the regulations on regional and municipal surtaxes to the personal income tax to the new regulations on the income of natural persons; increase in the cost allowed as a deduction in the presence of new hires; repeals; financial provisions.
The decree , in articles 1 to 3 , implements the provisions of art. 5, paragraph 1, letter a), of law 9 August 2023, n. 111 , containing " Delegation to the Government for tax reform " , aimed at carrying out the revision of the personal income tax system as well as the gradual reduction of the related tax (IRPEF) based on specific guiding principles and criteria aimed at:
1) guarantee compliance with the principle of progressivity in the perspective of changing the system towards a single tax rate , through the reorganization of deductions from the tax base, income brackets , tax rates and tax deductions gross ;
2) to achieve the gradual pursuit of horizontal equity by providing, within the scope of the IRPEF, the progressive application of the same no tax area and the same tax burden for all types of income produced, favoring this equality first and foremost between income from work employee and pension income.
THE FULL TEXT OF THE TAX DELEGATION
This is a machine translation from Italian language of a post published on Start Magazine at the URL https://www.startmag.it/economia/delega-fiscale-bozza/ on Mon, 16 Oct 2023 08:17:04 +0000.